Japanese automobile giant Toyota Group has reached a landmark deal with activist hedge fund Elliott Investment Management to privatise Toyota Industries, which will result in the biggest-ever acquisition of a Japanese company.
According to the latest arrangement, the carmaker and its affiliates will now pay 20,600 yen for each share of Toyota Industries not owned by them, apart from extending the tender period to March 16. The new offer now values the company at 6.7 trillion yen (USD 43 billion) and represents a 9.6% bump from its previous price.
Toyota clashed with Elliott, which argued that the prior offer severely undervalued Toyota Industries. According to Bloomberg data, if the buyout gets completed, it would be the biggest acquisition ever of a Japanese company, also providing a case study for Japan’s latest corporate reform push, where the move of strengthening shareholder rights can create open debate over company acquisition prices.
Calling the new deal a “win-win” for both sides, Bloomberg Intelligence senior auto analyst Tatsuo Yoshida told the Japan Times, “The Toyota side faces a larger funding burden but achieves its ultimate objective of taking Toyota Industries private. Elliott can still exit at a significantly higher valuation than before.”
While announcing that it would sell its shares at the offered price, Elliott called the latest Toyota Group offer “an improved outcome for minority shareholders that will promote the unwinding of cross-shareholdings within the Toyota Group and across the Japanese market.”
Incoming Toyota Motor Chief Executive Officer (CEO) Kenta Kon, who is also the director at Toyota Fudosan, the unlisted real estate venture leading the buyout, expressed optimism about the deal’s success. He informed the media that the Toyota Group had thoroughly discussed the buyout offer with its investors before proceeding. He stated, “The revised price accurately reflects the company’s market value, and we believe investors will agree.”
According to Toyota Industries, the squeeze-out and share repurchase will begin as soon as mid-May. Toyota Group will likely use this window to clinch more investors before finishing the deal. The Toyota Group also needs to secure financing from the banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group, which are backing the deal. While billionaire Paul Singer-led Elliott had built a 7.1% stake in Toyota Industries by early February 2026, it also used the opportunity to raise its opposition to the take-private deal, for undervaluing a company it said was worth closer to 26,000 yen a share.
“Without a doubt, Elliott made considerable returns. It would have been undesirable for the Toyota Group to drop its bid altogether, so it was meaningful to reach an agreement,” said Shigeru Matsumoto, a Kyoto University professor with a background in mergers and acquisitions.
Under the original take-private deal, Toyota Industries was supposed to go under the control of Toyota Fudosan, chaired by Akio Toyoda, Toyota Motor’s chairman and former CEO. Although he is the grandson of Toyota Motor’s founder, Kiichiro Toyoda, his direct ownership of the company stands at less than 1%, while Toyota Industries has a 9.1% stake in the carmaker. The buyout, had it proceeded in its original form, would have been a controversial because it would have bolstered Toyoda’s holding and influence over the broader Toyota Group, which includes suppliers and stakes in other businesses (including rival carmakers), despite having a direct ownership of less than 1%.
In June 2025, Toyota Group’s initial proposal of 16,300 yen per share met with sharp criticism, with the venture’s foreign investors making their anger clear. Added pressure from Elliott acted as the icebreaker, as the group finally had to reframe the deal, keeping investors’ interests in mind. The Toyota Group also faced pressure from the Japanese government to reform its corporate structure, while boosting shareholder returns.